tv French President Macron at World Economic Forum CSPAN January 27, 2018 5:20am-6:22am EST
>> speaking earlier was french manual -- president emmanuel macron. he discussed globalization, climate change, and terrorism. this is an hour. >> it is a great honor and a pleasure. a very special pleasure to macron,mr. emanuel president of the french republic. mr. president, your presence with a very full hall has a
very special importance. first, the theme of the annual meeting is to build a common in a fractured world. if the world is fractured today, it is certainly because of the ,onsequences of political economic, climate, and also technological and social change which confronts us today. and the battle between the right and the left which upset ideological thoughts. but rather, the confrontation between those that embrace and those who proactively world things for this new
by using in taking advantage of all the opportunities offered by revolution 4.0. and on the other hand, those who are resistant to change and look for salvation in the past and illusion is an. -- illusionism. you are welcome here because you are the symbol of this policy which we so badly need. us we are waiting to guide in this new world. reason for the importance of your presence here lies in the fact that 2018 will certainly be a decisive year for the future of the european union. we have a great opportunity. is a passionate and convinced european.
i am also one of those that really lived through the second world war. but thanks to the european union, we have economic and political stability, which is the guarantor for peace in our region. since your election, mr. president, just eight months ago, you have been able to restore confidence. you have given back hope, not alsoto young people, but to all generations, including mine. thank you for having come to us. i think it you are a person that comes regularly to dallvos. thank you for coming again today. we're grateful to you and we
hope to share your prospects and perspectives. thank you. [applause] >> thank you very much, professor. i would also like to salute the vice president of this forum. anhink that this is important choice you made this year and i would like to welcome the vice president as well as heads of state and government that are present here, as well as the friends that are here. >> it is most obvious when you arrived here at this moment to be talking about global in -- globalization in this place, almost cut off from the rest of the world by snow. and for sure, when you look outside, you are in this
building and it could be hard to believe in global warming. importantly, you didn't invite anybody skeptical with global warming this year. [laughter] so this might prevent -- present a series of challenges. today, regarding the environment, mitigating the challenges in france and in europe, this i will review for you and continue with the drive. let's not be naive. globalization is going through a major crisis. , from international
organizations, state companies, civil society, in order to find and implement. and this is the reason why i to choose decision such a topic for this year -- and the reason i came here today is to make a call for action. france has been very much affected by a lot of social change. and globalization and what is at stake. , but not really sure about that. thed to fight with nationalist party. why? you have a lot of fears, a lack of understanding about current
.lobalization atst, when you look unemployment. it is not completely fixed. just to get out from globalization. that gives me a special responsibility. the responsibility of building a france that is prosperous and open to the world. but also a france that is capital at recognizing and standing alongside those that have been forgotten and left behind by globalization. ensurethe same time, to
that you are working for the working class. that is the challenge. itfrance, in france, it is a different principle of that institution. it is very simple and straight. it make france more competitive, more innovative, in order to find a precise and fear system. and make it more competitive in an actual european way, which is the way we will succeed. and i just want to wrap up strategy. our word of chance, we definitely need less and more brains. france has all of the talents n the country. but women and men have to adapt to changes and be trained in an efficient way.
so we started to reform in-depth to gain our education system in order to better educate and train our eople. we decreased in these rankings and we have that system. we are reforming the rules in order to have different access to universities -- to provide better access to universities. and more importantly, to invest more and reform that education and training system. nd on top of this reform, we will launch. important reforms and training. ill launch.
because it is a call to deliver on the strategy and to train people in this current environment. if you want to accompany people in this global change, you have to empower them. during years and years, the if you want to accompany people best answer from both left and right in france was used to protect people by explaining i will protect you from any change. sometimes we have to accelerate some change, providing the actual direction which is to educate or retrain in order to find a new job. that is what will invest during ive years, 50 billion euros in education and retraining. and we'll simplify, streamline, and make much more efficient all of this. at the same time, we will massively fight for research and development.
we will strengthen the different tax credits and the fiscal mechanisms. and on top of it, we will create a new $10 billion -- 10 billion some for innovations. and we indicate billions to find the innovation rograms. it is once again on research and this human capital. on this reform agenda, it is precisely investment in capital. in such an economy that you perfectly know, which is the economy of innovation and competencies. it is a very competitive financing system. it is much more oriented to loans.
the direct environment for innovations. we pass the surface of reform in order to reallocate. this part of the reforms, as a global -- european and global initiatives. nd i think we can risk this by facilitating to a more defined group for a good and sustainable project. by decreasing corporate taxes, in order to decrease the corporate tax, we at 33% to be fair. in order to have bigger forms on capital gains and we will have a unique tax which will
make us -- by lifting taxes and wages. and by reducing the cost of workforce and capital, we have arranged for france's attractiveness. and this is only one of hem. he savings in our capital, the estruction and innovation. the third pillar is about acceleration and flexibility. education is the key to protect people. you know what facilitates this change? the different companies, startups, or large caps can
sometimes change of this model andriy adapt to global uncertainty. that is why we passed last year. it is very important in our abor market. hat we see in a nutshell is to realize france on germany and northern europe. it can be defined by law, and much more rules defined by the consensus. i.e., much more adapted to your business environment and for reallocation. it is much more productive at ome.
and i think it is very much aited for. acceleration and flexibility is also a series of microeconomic reforms. and that is what we are betting energy, housing, transportation, in order to reduce the plus, and at this sector. that is why we have that for e. it is competitiveness. we stop on one side, productivity on the other side. why? a lot of people, balance will come. you can create a lot of obs.
if we can create a lot of jobs, if we can create a lot of jobs, we pass a series of reforms in order to accelerate this group strategy. especially reducing co2 emissions. we will close all of these stations by 2021 during this mandate. it will step up the fight. with the project, now writing in france. nd i would say, it's about
in this correction, it definitely weakens our competitiveness. we will have a strategy to prevent it. and at the same time, we simplify and we streamline processes. for this change of mindset. and we're going crazy with a number of new regulations. and we reduce the number to change the administration and the number of people. we have to guarantee stability or people.
investors. itizens. that dimension about that ive-year strategy. it is brand-new. i have changed the taxes, and they change the rules because feasibility is part of this cultural change. that is a strategy, and it will ot change. that is my personal commitment that is my personal commitment and the commitment of the whole government. and the next question is about isk.
in france, it was for britain to fail and for bidden to succeed. i mean, as you can see, it reduces the weight. it should be not easy to fail. fail. to reduce the cost of failure, to come back and to try, and facilitate those successes. and to be granted for those successes. and we have to reduce the cost f failure. to succeed in the current nvironment, that is the change we are making in france. and because france is a nation
of entrepreneurs. it is a nation of people loving this kind of risk. and i think it was a big mistake. and the big mistake, when you look at our history regarding that -- ladies and gentlemen, my first message is that france is back. france's back at the core of urope. because you don't have french success without european success. and for me, all of the initiatives and reform -- i'm going to part with this european strategy. i see a lot of european leaders, and my very good friends. and altogether, we work very hard to have this common strategy. i know that angela merkel expressed a few hours ago, the vision. and we worked very closely in that direction. but in a nutshell, i just want
you to believe that the core strategy for me, for the coming year, and for this year, is to manage a reservation of all urope. we have to fix short-term policies. this is a 2018 program. but this year will be the year where we have to redoo sign a strategy for europe. in this environment europe has a responsibility and role to play because of china and the u.s., because our vision, our goal in terms of relationship between freedom, just this furnace in rights is unique. just have this kind of
balance between different values in europe. people for freedom in the u.s. the approach is different. you don't have this in china. so this people for freedom in the u.s. the approach sintsdz sis, which core of our globalization and our approach was made in europe and if we want to avoid this fragmentation of europe we we -- of the world sorry stronger europe. stronger euro my view is that we have to redesign the 10 year strategy because it is such an overnight trategy.
we need more ambition in order to have a more sovereign, united, and democratic europe. migration, digital comic energy, development, finance, nvestment. the core of what makes you sovereign in this current environment, we have to build our common policies. i am not naïve. we will never build something sufficiently ambitious at 27. and honestly, i don't want to say it is impossible to build t at 27. but you need more ambition for an avagard -- an avant garde europe to build on this. if some people are ready to be ore ambitious with integration
nd one makes you -- and what makes you sovereign in this global environment, to defend your values and interests, et's move. the window and the door is open all the time. but those who don't want to ove forward should not block hese people in the room. [applause] with such an ambition, we will make our europe much stronger, much fairer, much ambitious in terms of fairness, and much more able to deliver a
consistent message of what we want to do in this current environment. delivered a very long speech in september last year, and we worked very hard, but i do hope ith my friends here present in this room we will work together to have come at the end of this year, this common strategy for 10 years in order to provide visibility to all people and to the rest of the world about the fact that europe is able to be this. my friends, i must make a onfession. i'd like france to find its place in world competition, and i think that the condition for that is that europe should be stronger and should succeed in finding a new ambition. but that is not an end in itself.
economic growth is not an end in itself. i often think that we have made mistakes in our speeches. we've said things are going to get better because we will have growth. i think there are a lot of countries where you can have one or two points more growth, but it doesn't resolve all the issues. and economic growth is not an end in itself. it is a means to an end. this search for economic growth has sometimes led us to forget what people are prepared to accept in order to achieve it. the globalization crisis we are going through today is linked precisely to that. the world is fragmented by a series of economic, geopolitical phenomena, some of which could have been anticipated and which are associated with that fracture. we thought -- or some people thought -- that everybody was going to resolve the problems, emerging countries or newly emerging countries.
that is not the case because the growth is the structurally less equitable. i think whether it is the nternational institutions or ngos, there's really only 1% that get richer. i think you got the financials asian -- financialization. the economy really keeps encouragement for people with the most talent, so you cannot define a one-stop solution unless we coordinate our tax issues because otherwise talent ill disappear. we have tried that method. it doesn't work, and it is not going to work if you don't
coordinate your positions. we are living in a wonderful world. distances are shorter and shorter. but in our societies, verything is being re-fragmented. we have societies made of nomads which take advantage of globalization and whose lives are much closer to those in bombay and san francisco, to the people who live just across the hall. i think that the interests are then brought apart and set of rock together. a few kilometers from here there are people that think that solution is to get out of globalization, and there are more and more people who are now convinced that that is the right option. having said that, it means we ave a major challenge to
meet. is not just a challenge for governments, first of all because governments and states for many years now are probably going in the wrong direction. there is a political challenge. a lot of governments think you need to be more nationalist. ok, we're not doing very well to close our borders. then there are challenges which people fight about. my gregory rhodes, terrorism -- migratory roads, terrorism, technology changes. unless we are able to cooperate, we will not be able to take advantage of our dvantages. nd that means you are actually dragged downwards, and that is preventing us from meeting our ears and concerns. we are being fractional eyes and weight -- fractionalized and we undermine -- we've got
our own approach. we got alternative solutions. but all those structures grow out of a period of history. we saw what happened when you adopt a non-corporation -- a noncooperation approach between governments were there are a lot of real fears. for many years now we have been going in the wrong direction. if you look at social law, tax law, all of those are subjects in which are the basis of the state. we have really seen a weakening of the positions. i have told you what france is doing. in france was really liking behind the rest of europe -- france was really lagging behind the rest of europe.
but when i look at dynamism in the world today, we have a form of dynamism. we should be reducing our tax. there is no limit, a race to the bottom, people are saying. think of the social benefits if we don't convince the middle lasses and the working classes that globalization is good for them. it is not true. it is just not true. in terms of trade, we are moving back again towards strategies which are based on oncooperation, greater protectionism, fragmentation. we are undoing what globalization has been able to achieve, and in terms of climate change, i think that many people in paris in
december have not been able to live up to our commitments. if we are not able to deliver concrete results, how are we going to explain to people that hey are going to be more vulnerable? on all these issues that we are familiar with, we have added a number of subjects which we ave not even seen. accelerated migration and logical change, what you explained, professor. there are new forms of inequality. i think that once again we feel that we are not really cooperating as we should e.
we haven't established an organization at the world level which looks at all the changes that will be ushered in by artificial intelligence and big data. we have no common strategy. in europe we don't even have a strategy, either. in the united states there is a strategy to allow the private sector to do whatever it wants. of course, we use those tools on our devices and internet platforms, but they have privatized everything with all the consequences in terms of perhaps undermining the right to confidentiality, and everything has been done public with the control of data that are not the standards we ant. we have never had a multilateral approach on something which could lead to millions of jobs and change the way we live our lives. they could change medicine, or the knowledge i have about you in terms of our capacity to be cured, as well as national identity.
i don't want to paint too big a picture, but i think that we are encouraging technological change, but unless we are very careful and put a framework here, we really going to start looking like darwin. to live in a totally darwinian world, i don't know if it is very good. certainly it is not good for our populations and for people who want to live in a democracy. what are the challenges we face, and how do we come up with a response? apart from what we are doing in our own countries and what needs to be done in europe, i needs to be done in europe, i think we have got to reconnect a framework which provide for the common good. the common good is also something which exists such as sustainable health, human rights, and those common goods
can never really be renounced. in our strategies and approaches, we've got to actually spell them out. we've got to be able to regulate those common goods in a cooperative manner. i say that for governments, but also the private sector. quite honestly, i say to you rankly today, is that approach doesn't present -- produce results, my job will be to chieve that, and i hope that he private sector will come to france and help create jobs, but even in my country, this idea of leaning to globalization, if i cannot explain to the people than it is good to them and that it will help them to develop their
wn lives in 5, 10, 15 years, they will be the nationalist extremists who want to get out of the system, and they will win, and it will happen in every country. so you cannot just say, what are we going to do> it is terrible -- what are we going to do? it is terrible when you got nationalists or extremists or people who have terrorist messages when they win. he challenge is now. the question is, do we know how to establish a new global contract, a compact not between governments? if it is not included in the investment models and models of
banks and onto the doors, each one of these people understand they have a part to play in this global compact, it won't work because there will always be somebody who is going to be tempted not to cooperate because there will be a real premium for free riding. i think that today we are in a situation where, and our globalized world, a majority of owers are becoming free riders of our global system. that is the system we have today, and this new global compact has to be founded around three important commitments -- the right to invest, share, and protect. let me just say a few things about these duties. the duty to invest for states and the private sector, health and particular, that there is probably one area where we are not doing enough, and that is education. was talking about the
strategy we are developing in france. we have to do the same thing at the european level. i think that throughout our world and particularly in those reas in the greatest difficulty, the world today we have 750 million adults, 2/3 of whom are women, who don't have basic literary skills. if there is one priority, it is to invest in education and the education of girls in articular. if you don't invest in education, there will be no growth in the country. that means we are going to have a continuing creditor type -- continuing creditor type -- predator type in education. sometimes for cultural and religious reasons, the solutions can be found in
women. certain countries have regressed in terms of education. this is something we cannot keep quiet about. in view of that we need to invest massively in education. in africa in 2015 there were more than 101 million children who were not going to school, 53 million girls. next week i will be with a president to try to develop a partnership for education. it is important to an have all the government here agree on that. we do invest one euro in the education of girls, otherwise you are investing for the short term. if you are going to open a mine or some sort of transport and
infrastructure, fantastic. sometimes you will get state aid and there's a lot of financing to help you achieve what you want, but also do something which will stabilize the country now, and so i think that there must be investment in education. e must be investment in education. there has to be a public-private partnership here. i think this is absolutely fundamental, and i think investment and development having a more ambitious strategy than we have today is indispensable if we want to avoid this fragmentation. the second duty is the duty to share values. sharing of values is older than us, and it has always been something that has irrigated capitalism. that there is a crisis of contemporary capitalism. process,obalization thetalism has become capitalism of superstars.
the spreading of value is no longer equitable. atot of people don't look how their work is written rate it. a waywe have to establish to share value more fairly. to have a way of creating better incentives, not only financial and environmental. i am not just speaking about tax. if there's a greater social and environmental spots ability to companies, i am talking about the right to share growth and , andss when it is obtained the criteria for investment there will be surveillance of how investments are made, and that will ensure sustainability. if we are able to achieve that we will have a sustainable sharing capitalism. we cannot afford to make mistakes. there are companies that have been around for a long time that
had a strategy to share value added where there are incentives for employees, some with better incentive plans than others. i think the solution has to be found amongst investors, and i think there has to be greater equality. when i talk about sharing value added in the companies, we also need to speak about gender equality. in france we have a strategy in order to try and overcome some of the gaps between men and women in the five-year period. with the world economic forum, we are launching an initiative to have greater visibility in the private sector, and i wanted to welcome your commitment in this area. i think at the same time, collectively we need to go further, and i would like us to welcome the commitments -- of the g7, who said he would but this at the
heart of the canadian presidency. i would like to express my support to him. i think there is another important subject which i sketched over when i was talking about the challenges of the greater world. -- the contemporary world. it is the problem of tax. if we want to share value better, we need to have a more coordinated tax approach at the global level. -- i thinkhe bottom there is a collective impetus to be provided. the ocd has done a lot of good work in this area, and thanks to that we have been trying to prevent the erosion of a tax base. we have signed a multilateral treaty. france is in the process of establishing a ratification process. now, i would invite the united
states and china to enter into countries if the two -- the treaty. if the two countries don't join, we will be able to achieve very much. this is the real partnership to avoid tax erosion. we need to have a peaceful basis for tax cooperation which avoids the optimization strategies of certain companies, and i think a more element here. if you believe all the things you've heard and that you think are pertinent and the things that you have said during the speeches in davos, you cannot do tax optimization at hi -- optimization as it is being done today. otherwise it would mean that you're going to say my business is going to have to finance common goods.
on that subject i think we need unbridled tax ultimate station -- all demise -- ultimization. want -- wet we all can't be hypocritical about that. --the same time, there is how do i say to my country, you're going to become a champion, when the real champions don't pay any taxes and the startup does? how can i say that technological change is fantastic when those champions create the change that i welcome and they don't pay taxes? model, and that
is obvious, so we got to put an end to an unjust system, and we got to do this together because otherwise we all worry we will lose a competitive edge. we haven't been able to organize ourselves. there have been tax hubs that have been created. it is something that is in the common good of the world, the major digital players provoke disruptions. those disruptions are going to destroy millions of jobs around the world. we are going to have to reach rain these millions of people who are going to lose their jobs, so education is a common good and have to be financed. with those who destroy the jobs don't help us to finance the training or reaching of people, how my going to explain this to the working and middle classes? we've got to find a good framework for tax cooperation. i hope we will find that in europe this year. i hope we'll achieve the same thing this year with oecd, and i
also hope this will be done at the international level. re-findingo means vitality of cooperation in terms of finance and trade as we had after the crisis in 2008. i would just like to share a few proposals with you on this. i am in favor for the ims beginning it -- the imf beginning a mandate to survey the entire financial systems, particularly those areas which escaped regulation. [applause] we have created the imf. it has its legitimacy. it looks at what governments are doing in the financial sector, but it doesn't look at the least deregulated parts of the sector. bitcoin, crypto currencies, shadow banking, the most aggressive operators on the financial markets, the ones that can deregulate the whole system.
they are not being looked at by the imf, so we got to have a discussion, and i hope we are able to do this within the framework of the g20. i know they want to really put argentina in the forefront of this leadership role, and i think that they will be a very important role to be played by g20. that will give us the possibility to give more space to regulation. howlso need to think about we are going to regulate the major players. the companies that are the major players. i would mention them, but there's also a lot of destabilization because of technological change. we don't have a framework to regulate that. whenever going to stop innovation? we are going to stop this at some point. at one point or going to say,
artificial intelligence is a disruptingause it is not only our productive systems, but our relations with or our attitudes towards privacy? it also calls into question a number of philosophical principles. i think we need to have a framework of international cooperation in order to promote technology so that we can promote our startups, but we've also got to establish principles which cannot be decided by economic players, but rather by governments. i think that there too we should have a kind -- should have a conversation with in the context of the g20. it is to protect people. protecting in terms of financing terrorism, providing people with social protection. that is very important if we want to promote globalization. i think it shows the important role that can be played by governments and states.
for decades, people have said it is the end of government, or the private sector will take over, but i think to be able to meet all these challenges you need to have governments and international cooperation. on the societal aspect, we have to stop this question of rolling back all our social benefits. we need to have a discussion in the g20 to ensure that any monitoring being done by the imf and other major bodies, there must be monitoring of all those that can promote social cohesion. i think that in europe when we provide help, particularly in the cohesion plans, we look at factors such as social convergence. we need to have certain criteria which allow us to measure social convergence, and we shouldn't be -- asking countries to roll back
their social systems in order to take things down to the lowest level possible. which doesn't provide the minimum protection that societies require. i think that is an area where i hope we will be able to create a andogue between the imf established a list of criteria. in terms of client -- in terms of climate protection, a lot has been said. we have committed to a lot of things, but we are still not up to the commitments. an enormousne amount of work. it has maintained its efforts position ined its the agreement of paris. india is also very important. i think that is very important
in the transition, but we now need to follow through and respect the paris agreement. must go aan union little bit further and create -- if we don't do that, we won't be credible. we have a co2 market and we have to have a new price for it, and we have got to try to change the production model. in china a few weeks ago and i was impressed by the diplomatic initiative by the --sident, who mentioned the one belt one road initiative has to be in line with the goals. it cannot be called based. -- and cannot be -- it cannot be coal-based. thirdly, we need to continue
going further, and i hope that by 2020 we will have an environmental pact, which will and ensure justice for our citizens in terms of protecting the environment. the private sector must also live up to its commitment. i hope that all the investors, all of the donors that have signed up will begin to regularly show that there is a real commitment by the private sector, and finally, it is the financial system which has to take or accompany this change. i think financing is very important. you cannot finance a transformation without it. we also need to finance and develop a model, which is sustainable.
fundamental role to play. in the european union, in the eurozone, we need to find a way green financial center, which accelerates these transition models. in terms of social protection, we need to provide production to our societies and peoples. i think that is an essential subject. let me share a few of my convictions. the first is that we are committed in fighting against terrorism. these are committed to fighting a lot of forces. some of these terrorist forces were organized in different ways in different parts of the world. againsttruggle terrorism, we need to work within our partners both at the military and diplomatic level, that there are certain basic
principles that must be respected. that has to be done multilaterally. i don't think we can believe that multilateral framework -- allieve that can multilateral framework. acting in a multilateral way means that that we could put regional power such as north korea and iran, but leading to the fracturing of certain regions. the struggle has to be done within the framework with the political approach and diplomatic approach. sometimes we have created solutions that have led to terrorism, believing that simply trying to get rid of a tyrant,
that it would solve all of our problems. opt to self -- to replace the sovereignty of people and their sufferings. only state or political sustainable solutions will allow us to achieve a result and allow us to fight against terrorism. frustrationent being rekindled in these countries, so we have got to not only win the war against terrorism, but we have got to create the conditions for durable peace and areas of the world which are engaged in this struggle. i'm thinking of the middle east, but i am also thinking of africa. think our cooperation is important. we have got to in peace building as well. everything is linked. we have got to get meaning to globalization, which would bring it to these parts of the world, and that is why diplomatic
activities is inseparable from our military policy. if you fight against terrorism in a country, you have no development strategy here if you have no education strategy for that country, now, you might one day win, but the next day, the causes that led to terrorism will not have been eradicated. and i think everything is linked. terrorism has come back to a certain region. we weren't able to provide a development, education policy. lake haduction of the led to an economic and moral crisis in the region. that is why jihadists have been fight. fighting against terrorism is a military option, but it also requires a diplomatic solution. i will finish up on this point. contracthat the social
has to involve all of the stakeholders. we have got to fight against riders.ters -- free we should not have trade agreements with countries to -- countries that do not respect health or social conditions. should not have agreements with certain powers of they do not meet our criteria. we ought to have a consistent agenda in terms of protecting the public. i think it would be much better that we come together and prevent it from increasing. a new global and shared framework. this framework should be based --cooperation and
not a fascination on new power. it would be a huge mistake. it means we have now a tremendous responsibility, because this new framework, this pact is to protect our common good and our people. the answer is in this room. in a certain way, our new a geographical or technological one. is much more -- it is much more our commitment. are our own frontier in our own conscience. to makemmit ourselves our current civilization more sustainable, if we commit , to take to enable
into consideration long-term complexity and not just short-term returns so we can converge and build a new for ouration and good people, resuming this great idea of progress, we have the solution. businesses,nment, we just have a question -- do we decide to do it or not? this is now. thank you. [applause] >> president trump addressed participants on the final day of the economic form in doubles, switzerland. after his